percentage of current and performing mortgages serviced by large national and
federal savings banks improved by more than a percentage point during the first
quarter of 2014 the Office of the Comptroller of the
Currency (OCC) said today. At the end of
the quarter they made up 93.1 percent of the total portfolio of those
institutions compared to 91.8 percent at the end of the fourth quarter and 90.2
percent in the first quarter of 2013.
According to OCC's Mortgage Metrics Report, the percentage
of mortgages that were 30 to 59 days past due decreased 19.8 percent from a
year earlier to 2.1 percent of the portfolio, the lowest level since the OCC
began reporting mortgage performance in 2008. Mortgages that were 60 or more days past due
or 30 days or more if held by homeowners in bankruptcy decreased to 3.1 percent
compared with 4.0 percent a year earlier. This is the lowest percentage of
seriously delinquent mortgages on the books since June 2008.
There were 432,832 mortgages in
foreclosure at the end of the quarter, a decrease of 52.3 percent from a year
earlier. This is 1.8 percent of all
outstanding mortgage and again the lowest percentage in nearly six years. Foreclosure starts during the quarter were 49.1
percent lower than in the first quarter last year at 90,852 and the 56,185
completed foreclosures represented an annual drop of 33.9 percent. OCC credited improved economic conditions, foreclosure
prevention assistance and transfers to servicers not under OCC supervision for
the improving distressed loan metrics.
Servicers implemented 237,133 home
retention actions (modifications, trial-period plans, and shorter-term payment
plans) in the quarter, a decrease of 32.1 percent from the first quarter of
2013. Though down significantly, retention
actions were still over three times the volume of home forfeiture actions
(completed foreclosures, short sales, and deed-in-lieu-of-foreclosure actions)
which totaled 71,678. Almost 91 percent
of modifications in the first quarter of 2014 reduced monthly principal and
interest payments, and 58.6 percent of modifications reduced payments by 20
percent or more, an average of 292 per month.
Modifications made under the Home Affordable Modification Program
reduced monthly payments by an average of $312.
Of over 3.46 million modifications
put in place by servicers between January 1, 2008 and December 31, 2013, more
than 60 percent were still active at the end of the first quarter of this
year. Of these, 69.9 percent were
current and performing at quarter end, 23.9 percent were delinquent, and 6.1
percent were in the process of foreclosure.
The mortgages in the portfolio
overseen by OCC and included in its report represent about 48 percent of all
outstanding mortgages in the country. There are currently about 24.5 million
loans with an outstanding principal balance of $4.1 trillion in the U.S.